EA-17692 · Mean Reversion

Exp_IBS_RSI_CCI_v4_X2

This EA uses a combination of IBS (Internal Bar Strength), RSI, and CCI indicators across two timeframes (X2) to identify mean reversion trading opportunities. It generates buy signals when indicators show oversold conditions and sell signals when overbought, with v4 representing the fourth iteration of the strategy refinement. The dual-timeframe approach adds confirmation filtering to reduce false signals.

Open the interactive view (equity curve, symbol switch)

Key facts

RiskMedium
Blow-up riskHigh
Rating★★★☆☆
TypeTrading EA
TimeframesM15, H1, H4
IndicatorsIBS, RSI, CCI
Author—

Backtest results (H1, about 1 year)

SymbolP&LAnnualMax DDTradesWin rateSharpeRecoveryLosing streakPer tradeStatus
EURUSD-5.13%-4.47%8.66%14445.50%-1.10-0.595−$3.82Reliable
GBPUSD+0.32%+0.27%4.81%14451.00%0.080.074+$0.06Reliable
USDJPY-3.55%-3.09%5.64%14444.80%-0.64-0.636−$2.37Reliable
XAUUSD-90.58%-85.80%91.60%3534.30%-2.42-0.994−$258.80Account stopped out

Profitable on 1 of 4 markets with reliable results.

Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.

Against the other Mean Reversion EAs with a reliable result on the same market: EURUSD: better than 20% of 30 · GBPUSD: better than 66% of 32 · USDJPY: better than 22% of 32 · XAUUSD: better than 19% of 31

Month by month

MarketMonths with a gainBest monthWorst month
EURUSD62%+1.10% 2026-08-2.27% 2026-09
GBPUSD62%+1.77% 2026-07-1.92% 2026-02
USDJPY23%+2.18% 2026-08-1.39% 2025-11
XAUUSD0%0.00% 2026-02-85.02% 2026-01

From the backtest equity curve, sampled about every two days; only reliable results.

Blow-up risk: High

  • Hit a stop-out in our backtest (equity below 10%) on XAUUSD

High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →

Strategy analysis

The strategy concept is based on mean reversion, combining IBS to measure internal bar price position, RSI to gauge momentum overbought/oversold levels, and CCI to measure statistical deviation from mean price, with all three confirming overbought/oversold states together. Entry conditions: go long when IBS is below its threshold and RSI is in oversold territory and CCI is below its threshold, and conversely go short when IBS exceeds its upper threshold with RSI overbought and CCI above threshold, with both timeframes required to confirm alignment. Exit conditions include fixed take-profit and stop-loss levels, indicator reversal signal exits, and optional trailing stop protection. Position sizing uses either fixed lot sizes or percentage-based lot calculation derived from account balance. Money management includes maximum position limits and loss protection mechanisms, but lacks dynamic position adjustment and equity drawdown controls.

Strengths

  • Triple indicator confluence effectively reduces false signals and improves entry quality
  • Dual-timeframe filtering enhances signal reliability and reduces noise interference
  • Mean reversion strategy performs well in ranging markets with clear, explainable logic
  • Multi-dimensional indicator combination (momentum + statistical deviation + internal structure) provides more comprehensive market state assessment

Weaknesses

  • Mean reversion strategy suffers continuous losses in strong trending markets, lacking trend identification filter
  • Triple indicator simultaneous condition satisfaction may lead to sparse signals, missing some trading opportunities
  • Fixed TP/SL does not account for market volatility changes, potentially causing frequent stop-outs during high volatility
  • Lacks dynamic position sizing and equity drawdown protection mechanisms
  • Dual-timeframe confirmation may cause entry delays, missing optimal entry prices

Possible improvements

  • Add a trend filter (such as ADX or long-term moving average slope) to pause trading or reverse strategy logic during strong trending markets
  • Introduce ATR-based dynamic stop-loss and take-profit that automatically adjusts based on market volatility
  • Add a money management module including maximum drawdown limits, daily loss caps, and dynamic position sizing

Risk assessment

Overall risk: Medium

  • Fixed stop-loss may be insufficient to cover normal volatility range in high-volatility markets
  • Lacks trending market protection mechanism, mean reversion trades against trends leading to consecutive losses
  • No maximum drawdown limit or daily loss protection, vulnerable to significant losses during extreme market conditions

Evaluation scores

Code quality3.0
Strategy logic3.0
Risk management2.0
Robustness3.0
Innovation3.0
Documentation2.0
Overall2.7

Parameters

ParameterDefaultDescription
IBS_Level_Up0.7IBS overbought upper threshold
IBS_Level_Down0.3IBS oversold lower threshold
RSI_Period14RSI indicator period
RSI_Level_Up70RSI overbought threshold
RSI_Level_Down30RSI oversold threshold
CCI_Period14CCI indicator period
CCI_Level_Up100CCI overbought threshold
CCI_Level_Down-100CCI oversold threshold
StopLoss500Stop loss in points, limits max loss per trade
TakeProfit750Take profit in points, locks profit target per trade
LotSize0.1Fixed trading lot size
Timeframe1H1First confirmation timeframe
Timeframe2H4Second confirmation timeframe
TrailingStop0Trailing stop in points, 0 to disable
MagicNumber123456Magic number for closing, 0 for all positions

Similar Mean Reversion EAs

Backtests are historical simulations and do not guarantee future results. Not financial advice.

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